Kinoxis raises $6.75M equity plus $2.5M grant to advance dementia agitation drugs

Kinoxis Therapeutics, a dementia drug spinout founded at the University of Sydney and now based in Melbourne, has raised $6.75 million in equity and secured a $2.5 million government grant. The equity round was led by Main Sequence, which contributed $5 million and added principal Elaine Stead to the company's board.

The combined $9.25 million will be used to push Kinoxis' drug candidates through clinical and preclinical development focused on agitation in people with dementia and on related pain programs. Kinoxis' lead candidate, KNX100, is already in a Phase 2 study called CARES-X. The grant specifically funds work on KNX101, a longer-acting candidate intended for chronic agitation and aggression.

• KNX100: Being evaluated in CARES-X for both persistent agitation and rapid treatment of acute agitation episodes. The trial has passed half its recruitment target and has broadened enrollment to include hospital dementia wards and residential aged care facilities. Kinoxis expects initial trial results in mid-2027.

• KNX101: The CUREator+ grant will fund toxicology studies ahead of human trials. Kinoxis expects to begin those toxicology studies by the end of 2026.

Kinoxis is also working on longer-acting drug candidates for acute and chronic pain. The company intends to pursue partnerships to support further development and commercialisation of treatments for brain-related conditions and pain.

Main Sequence led the round with a $5 million cheque and now has a director on Kinoxis' board. Kinoxis' cap table also includes Uniseed, UniSuper, Sydney Uni, Stoic VC, US-based Avicella Capital, and several sophisticated investors. Earlier financings include a $14.5 million Series B two years ago and a $5 million Series A2 in December 2020.

• CARES-X interim data and initial results expected mid-2027.
• Completion of toxicology studies for KNX101 by the end of 2026 and any announcements on IND-enabling timelines.
• Partnership or licensing deals to support late-stage development and commercialisation.

This financing advances Kinoxis' timeline for clinical readouts and preclinical work on a longer-acting agent for chronic agitation. The mix of equity and non-dilutive grant funding reduces near-term capital pressure while the firm completes Phase 2 recruitment and preclinical safety work.